79R9477 DLF-F
By: Eiland H.B. No. 2568
A BILL TO BE ENTITLED
AN ACT
relating to certain retired school employees and the powers and
duties of the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.012(b), Education Code, is amended to
read as follows:
(b) An employee of a home-rule school district does not
qualify [who qualifies] for membership in the Teacher Retirement
System of Texas [shall be covered under the system in the same
manner and to the same extent as a qualified employee employed by an
independent school district is covered].
SECTION 2. Section 12.057(b), Education Code, is amended to
read as follows:
(b) An employee of an independent school district who is
employed on a campus or program granted a charter under this
subchapter and [Section 12.052, 12.0521(a)(1), or 12.053] who
qualifies for membership in the Teacher Retirement System of Texas
shall be covered under the system in the same manner and to the same
extent as a qualified employee of the independent school district
who is employed on a regularly operating campus or in a regularly
operating program [is covered].
SECTION 3. Section 12.1057(a), Education Code, is amended
to read as follows:
(a) An employee of an open-enrollment charter school
operating under a charter granted by the State Board of Education
who qualifies for membership in the Teacher Retirement System of
Texas shall be covered under the system to the same extent a
qualified employee of a school district is covered.
SECTION 4. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1164 to read as follows:
Sec. 12.1164. NOTICE TO TEACHER RETIREMENT SYSTEM OF TEXAS.
(a) The commissioner must notify the Teacher Retirement System of
Texas in writing of the revocation, denial of renewal, or surrender
of a charter under this subchapter not later than the 10th business
day after the date of the event.
(b) The commissioner must notify the Teacher Retirement
System of Texas in writing that an open-enrollment charter school
is no longer receiving state funding not later than the 10th
business day after the date on which the funding ceases.
(c) The commissioner must notify the Teacher Retirement
System of Texas in writing that an open-enrollment charter school
has resumed receiving state funds not later than the 10th business
day after the date on which funding resumes.
SECTION 5. Sections 22.004(a), (b), (c), (i), and (j),
Education Code, are amended to read as follows:
(a) A district shall participate in the uniform group
coverage program established under Chapter 1579 [Article 3.50-7],
Insurance Code, as provided by Subchapter D [Section 5] of that
chapter [article].
(b) A district that does not participate in the program
described by Subsection (a) shall make available to its employees
group health coverage provided by a risk pool established by one or
more school districts under Chapter 172, Local Government Code, or
under a policy of insurance or group contract issued by an insurer,
a company subject to Chapter 842, Insurance Code, or a health
maintenance organization under Chapter 843, Insurance Code. The
coverage must meet the substantive coverage requirements of Chapter
1251, Subchapter A, Chapter 1364, and Subchapter A, Chapter 1366
[Article 3.51-6], Insurance Code, and any other law applicable to
group health insurance policies or contracts issued in this state.
The coverage must include major medical treatment but may exclude
experimental procedures. In this subsection, "major medical
treatment" means a medical, surgical, or diagnostic procedure for
illness or injury. The coverage may include managed care or
preventive care and must be comparable to the basic health coverage
provided under Chapter 1551, Insurance Code. [The board of
trustees of the Teacher Retirement System of Texas shall adopt
rules to determine whether a school district's group health
coverage is comparable to the basic health coverage specified by
this subsection. The rules must provide for consideration of the
following factors concerning the district's coverage in
determining whether the district's coverage is comparable to the
basic health coverage specified by this subsection:
[(1) the deductible amount for service provided inside
and outside of the network;
[(2) the coinsurance percentages for service provided
inside and outside of the network;
[(3) the maximum amount of coinsurance payments a
covered person is required to pay;
[(4) the amount of the copayment for an office visit;
[(5) the schedule of benefits and the scope of
coverage;
[(6) the lifetime maximum benefit amount; and
[(7) verification that the coverage is issued by a
provider licensed to do business in this state by the Texas
Department of Insurance or is provided by a risk pool authorized
under Chapter 172, Local Government Code, or that a district is
capable of covering the assumed liabilities in the case of coverage
provided through district self-insurance.]
(c) The cost of the coverage provided under the program
described by Subsection (a) shall be paid by the state, the
district, and the employees in the manner provided by Subchapter F,
Chapter 1579 [Article 3.50-7], Insurance Code. The cost of
coverage provided under a plan adopted under Subsection (b) shall
be shared by the employees and the district using the contributions
by the state described by Subchapter F, Chapter 1579 [Section 9,
Article 3.50-7], Insurance Code [, or by Article 3.50-8, Insurance
Code].
(i) Notwithstanding any other provision of this section, a
district participating in the uniform group coverage program
established under Chapter 1579 [Article 3.50-7], Insurance Code,
may not make group health coverage available to its employees under
this section after the date on which the program of coverages
provided under Chapter 1579 [Article 3.50-7], Insurance Code, is
implemented.
(j) This section does not preclude a district that is
participating in the uniform group coverage program established
under Chapter 1579 [Article 3.50-7], Insurance Code, from entering
into contracts to provide optional insurance coverages for the
employees of the district.
SECTION 6. Section 821.003, Government Code, is amended to
read as follows:
Sec. 821.003. RETIREMENT SYSTEM. The retirement system is
a public entity [an agency of the state]. Except as provided by
Section 825.304, the Teacher Retirement System of Texas is the name
by which all business of the retirement system shall be transacted,
all its funds invested, and all its cash, securities, and other
property held.
SECTION 7. Section 822.201(c), Government Code, is amended
to read as follows:
(c) Excluded from salary and wages are:
(1) expense payments;
(2) allowances;
(3) payments for unused vacation or sick leave;
(4) maintenance or other nonmonetary compensation;
(5) fringe benefits;
(6) deferred compensation other than as provided by
Subsection (b)(3);
(7) compensation that is not made pursuant to a valid
employment agreement;
(8) payments received by an employee in a school year
that exceed $5,000 for teaching a driver education and traffic
safety course that is conducted outside regular classroom hours;
(9) the benefit replacement pay a person earns as a
result of a payment made under Subchapter B or C, Chapter 661;
(10) any amount [contributions to a health
reimbursement arrangement account] received by an employee under
former Article 3.50-8, Insurance Code, Chapter 1580, Insurance
Code, or a rider or other provision of the General Appropriations
Act funding those provisions; and
(11) any compensation not described by Subsection (b).
SECTION 8. Section 823.006, Government Code, is amended to
read as follows:
Sec. 823.006. LIMITS ON ANNUAL CONTRIBUTIONS FOR PURCHASE
OF [PERMISSIVE] SERVICE CREDIT [RESTRICTIONS]. Notwithstanding
any other provision of this subtitle, the retirement system may
limit the purchase of service credit to the extent required by
applicable limits on the amount of annual contributions a
participant may make to a qualified plan under Sections 401(a) and
415(c), Internal Revenue Code of 1986. [(a) In this section:
[(1) "Nonqualified service" means service for which
permissive service credit is authorized by this subtitle, other
than:
[(A) military service; and
[(B) service for any agency or instrumentality of
this state, including a political subdivision of this state, or for
any public school supported by the United States or a state or
territory of the United States, if credit for the service would not
cause a person to receive a retirement benefit for the same service
from more than one retirement system or program.
[(2) "Permissive service credit" means service
credit:
[(A) that is not membership credit authorized to
be reinstated;
[(B) that is recognized under this subtitle for
purposes of computing a member's benefit under the retirement
system;
[(C) for which the member has not received credit
with the retirement system; and
[(D) that a member may receive only by making a
voluntary additional contribution in an amount determined as
provided by this subtitle that does not exceed the amount necessary
to fund the benefit attributable to the service credit.
[(b) The purchase of permissive service credit by a person
who first becomes a member of the retirement system after August 31,
2000, is subject to the restrictions and conditions of Subsection
(d) in addition to all other requirements of this subtitle
applicable to the purchase.
[(c) The purchase by any person of permissive service credit
that was first made available under the retirement system after
December 31, 1997, is subject to the restrictions and conditions of
Subsection (d) in addition to all other requirements of this
subtitle applicable to the purchase.
[(d) Under a circumstance described by Subsection (b) or
(c), a member may not purchase more than five years of permissive
service credit for nonqualified service, and a member may not
purchase service credit for nonqualified service before the member
has at least five years of membership service credit.]
SECTION 9. Section 824.503(d), Government Code, is amended
to read as follows:
(d) A benefit under Subsection (c) is payable to the person
or persons designated as the beneficiary of the beneficiary and, if
such person has not been designated or does not survive, then to the
persons entitled to distribution of the deceased beneficiary's
estate.
SECTION 10. Section 825.101, Government Code, is amended to
read as follows:
Sec. 825.101. GENERAL ADMINISTRATION. The board of
trustees is responsible for the general administration and
operation of the retirement system. Notwithstanding any other law,
the board of trustees has exclusive control over all assets held in
trust by the retirement system and all operations funded by trust
assets and shall administer the retirement system for the sole and
exclusive benefit of the members and participants.
SECTION 11. Section 825.103, Government Code, is amended by
adding Subsections (c), (d), (e), and (f) to read as follows:
(c) Chapter 412, Labor Code, does not apply to the
retirement system. The board of trustees may acquire services
described by that chapter in any manner or amount the board
considers reasonable. The State Office of Risk Management shall
provide services for the retirement system as requested by the
retirement system, and the retirement system may use the services
of the State Office of Risk Management to obtain insurance and
perform risk management and workers compensation claim services.
The State Office of Risk Management shall pay to the retirement
system any amounts collected on behalf of the system through
subrogation of claims, regardless of the budget biennium in which
the office receives the amounts. The State Office of Risk
Management shall pay these amounts directly to the retirement
system instead of to the general revenue fund.
(d) Notwithstanding any other law, the retirement system
has exclusive authority over the purchase of goods and services
using money other than money appropriated from the general revenue
fund, including specifically, money from trusts under the
administration of the retirement system, and Subtitle D, Title 10,
Government Code, does not apply to the retirement system with
respect to that money. The retirement system shall acquire goods or
services by procurement methods approved by the board of trustees
or the board's designee. For purposes of this subsection, goods and
services include all professional and consulting services and
utilities as well as supplies, materials, equipment, skilled or
unskilled labor, and insurance. The Texas Building and Procurement
Commission shall procure goods or services for the retirement
system at the request of the retirement system, and the retirement
system may use the services of that commission in procuring goods or
services.
(e) Chapters 2054 and 2055 do not apply to the retirement
system. The board of trustees shall control all aspects of
information technology and associated resources relating to the
retirement system, including computer and data management
operations, procurement of hardware, software, and middleware,
location, and operation, and replacement of computers and systems,
data processing, security, and disaster recovery. The Department
of Information Resources shall assist the retirement system at the
request of the retirement system, and the retirement system may use
the services of that department in procuring goods and services.
(f) Subchapter C, Chapter 2260, does not apply to the
retirement system. The acceptance of benefits by the retirement
system under a contract does not waive immunity from suit or
immunity from liability.
SECTION 12. Section 825.112, Government Code, is amended to
read as follows:
Sec. 825.112. [FIDUCIARY] INSURANCE. Notwithstanding any
other law, the [The] board of trustees may self-insure or purchase
any [liability] insurance, including fiduciary and liability [for
the] coverage for trust assets or for [of] the trustees, employees,
and agents of the board of trustees, [from an insurer licensed to do
business in this state] in [the] amounts the board of trustees
considers reasonable and prudent [necessary. A policy of insurance
purchased under this section may not provide reimbursement for
liability imposed or expenses incurred because of a trustee's,
employee's, or agent's intentional fraud or intentional failure to
act prudently].
SECTION 13. Section 825.115, Government Code, is amended to
read as follows:
Sec. 825.115. APPLICABILITY OF CERTAIN LAWS. (a) Except as
provided by this section, the [The] board of trustees is subject to
the open meetings law, Chapter 551, and the administrative
procedure law, Chapter 2001.
(b) The board of trustees may in its sole discretion make a
final decision on a contested case. Notwithstanding any other law,
the board of trustees may in its sole discretion modify, refuse to
accept, or delete any proposed finding of fact or conclusion of law
contained in a proposal for decision submitted by an administrative
law judge or other hearing examiner, or make alternative findings
of fact and conclusions of law, in a proceeding considered to be a
contested case under Chapter 2001. The board of trustees shall
state in writing the specific reason for its determination and may
adopt rules for the implementation of this subsection. The board of
trustees may delegate its authority under this subsection to the
executive director, and the executive director may delegate the
authority to another employee of the retirement system.
(c) The executive director or the executive director's
designee under Subsection (b) may refer an appeal relating to the
pension plan to the State Office of Administrative Hearings for a
hearing or may employ, select, or contract for the services of an
administrative law judge or hearing examiner not affiliated with
the State Office of Administrative Hearings to conduct a hearing.
This subsection prevails over any other law to the extent of any
conflict.
SECTION 14. Section 825.208, Government Code, is amended to
read as follows:
Sec. 825.208. COMPENSATION OF EMPLOYEES; PAYMENT OF
EXPENSES. (a) Notwithstanding any other law, the [The] board of
trustees shall approve the rate of compensation of all persons it
employs and the amounts necessary for other expenses for operation
of the retirement system. If expenditures are paid from money
appropriated from the general revenue fund rather than from trust
funds, the [The] rates and amounts may not exceed those paid for
similar services for the state.
(b) The retirement system is exempt from Chapter 660 and
Subchapter K, Chapter 659, to the extent the board of trustees
determines an exemption is necessary for the performance of
fiduciary duties.
(c) The board of trustees may compensate employees of the
retirement system, whether subject to or exempt from the overtime
provisions of the Fair Labor Standards Act of 1938 (29 U.S.C.
Section 201 et seq.), at the rate equal to the employees' regular
rate of pay for work performed on a legal holiday or for other
compensatory time accrued, when taking compensatory time off would
be disruptive to the system's normal business functions.
SECTION 15. Section 825.403, Government Code, is amended by
adding Subsections (k) and (l) to read as follows:
(k) Reporting entities and the commissioner of education
shall inform the retirement system of changes in status of a school
district or charter school that affect the reporting
responsibilities of the entity.
(l) The commissioner of education shall notify the
retirement system in writing:
(1) of the revocation, denial of renewal, or surrender
of a charter issued by the State Board of Education, within 10
business days of the date of the event;
(2) that an open-enrollment charter school or other
reporting entity no longer is receiving state funds, within 10
business days of the date on which funding ceases; and
(3) when an open-enrollment charter school or other
reporting entity resumes receiving state funds, within 10 business
days of the date on which funding resumes.
SECTION 16. Sections 825.410(a) and (h), Government Code,
are amended to read as follows:
(a) Payments to establish special service credit as
authorized under this subtitle, other than service credit that may
only be determined and paid for at the time of retirement such as
unused leave as authorized by Section 823.403, [in Sections
805.002, 823.302, 823.304, 823.401, 823.501, and 825.403] may be
made in a lump sum by a monthly payroll deduction in an amount not
less than one-twelfth of the contribution required to establish at
least one year of service credit, or in equal monthly installments
over a period not to exceed the lesser of the number of years of
credit to be purchased or 60 months. Installment and payroll
deduction payments are due on the first day of each calendar month
in the payment period. If an installment or payroll deduction
payment is not made in full within 60 days after the due date, the
retirement system may refund all installment or payroll deduction
payments less fees paid on the lump sum due when installment or
payroll deduction payments began. Partial payment of an
installment or payroll deduction payment may be treated as
nonpayment. A check returned for insufficient funds or a closed
account shall be treated as nonpayment. When two or more
consecutive monthly payments have a returned check, a refund may be
made. If the retirement system refunds payments pursuant to this
subsection, the member is not permitted to use the installment
method of payment or the payroll deduction method, as applicable,
for the same service for three years after the date of the refund. A
member who requests and receives a refund of installment or payroll
deduction payments also is not permitted to use the same method of
payment for the same service for three years after the date of the
refund.
(h) The board of trustees has authority to adopt rules to
implement this section, including rules establishing a minimum
amount for monthly installment or payroll deduction payments and
rules establishing payment under Section 823.004(b).
SECTION 17. Section 825.506, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) It is intended that the retirement system administer the
plan in a manner that satisfies the required minimum distribution
provisions of Section 401(a)(9), Internal Revenue Code of 1986.
The board of trustees may adopt rules to administer the
distribution requirements, including distribution when a
participant dies before the entire interest is distributed.
SECTION 18. Section 825.507(b), Government Code, is amended
to read as follows:
(b) The retirement system may release records of a
participant, including a participant to which Chapter 803 applies,
to:
(1) the participant or the participant's attorney or
guardian or another person who the executive director determines is
acting on behalf of the participant;
(2) the executor or administrator of the deceased
participant's estate, including information relating to the
deceased participant's beneficiary;
(3) a spouse or former spouse of the participant if the
executive director determines that the information is relevant to
the spouse's or former spouse's interest in member accounts,
benefits, or other amounts payable by the retirement system;
(4) an administrator, carrier, consultant, attorney,
or agent acting on behalf of the retirement system;
(5) a governmental entity, an employer, or the
designated agent of an employer, only to the extent the retirement
system needs to share the information to perform the purposes of the
retirement system, as determined by the executive director;
(6) a person authorized by the participant in writing
to receive the information;
(7) a federal, [or] state, or local criminal law
enforcement agency that requests a record for a law enforcement
purpose;
(8) the attorney general to the extent necessary to
enforce child support; or
(9) a party in response to a subpoena issued under
applicable law if the executive director determines that the
participant will have a reasonable opportunity to contest the
subpoena.
SECTION 19. The heading to Section 825.512, Government
Code, is amended to read as follows:
Sec. 825.512. INVESTMENT PRACTICES AND PERFORMANCE REPORTS
[AUDIT].
SECTION 20. Section 825.512(e), Government Code, is amended
to read as follows:
(e) The retirement system shall submit an annual investment
performance report not later than the 45th day after the end of each
fiscal year to the governor, the lieutenant governor, the speaker
of the house of representatives, the executive director of the
State Pension Review Board, the legislative audit committee, the
committees of the senate and the house of representatives having
jurisdiction over appropriations, the committees of the senate and
the house of representatives having principal jurisdiction over
legislation governing the retirement system, and the Legislative
Budget Board. The report shall include a listing of all commissions
and fees paid by the system during the reporting period for the
sale, purchase, or management of system assets. [The report shall
be in a form recommended by the evaluating firm.]
SECTION 21. Subchapter F, Chapter 825, Government Code, is
amended by adding Sections 825.519 and 825.520 to read as follows:
Sec. 825.519. ELECTRONIC INFORMATION. The retirement
system may provide confidential information electronically to
members or other participants or employers and receive information
electronically from those persons, including by use of an
electronic signature or certification in a form acceptable to the
retirement system. An unintentional disclosure to, or unauthorized
access by, a third party related to the transmission or receipt of
information under this section is not a violation by the retirement
system of any law, including a rule relating to the protection of
confidential information.
Sec. 825.520. IMMUNITY FROM LIABILITY. The trustees,
executive director, and employees of the retirement system are not
liable for any action taken or omission made or suffered by them in
good faith in the performance of any duty in connection with any
program or system administered by the retirement system.
SECTION 22. Section 2254.102, Government Code, is amended
by adding Subsection (d) to read as follows:
(d) This subchapter does not apply to a contract for legal
services entered into by the Teacher Retirement System of Texas if
the services are paid for from money that is not appropriated from
the general revenue fund, including funds of a trust administered
by the retirement system.
SECTION 23. Section 1575.052(b), Insurance Code, is amended
to read as follows:
(b) The trustee may:
(1) study the operation of all group coverage provided
under this chapter; and
(2) contract for advice and counsel in implementing
and administering the group program with [an] independent and
experienced group insurance consultants and actuaries [consultant
or actuary].
SECTION 24. Section 1575.303, Insurance Code, is amended by
adding Subsection (c) to read as follows:
(c) The fund is held in trust for the benefit of
participants of the program and may not be diverted.
SECTION 25. Sections 1576.003 and 1576.004, Insurance Code,
are amended to read as follows:
Sec. 1576.003. CONTRACTS TO PROVIDE COVERAGES
[ADMINISTERING FIRM]. The trustee may contract with one or more
carriers authorized to provide [select an administering firm to
administer the group] long-term care insurance to provide that
coverage [program under contract with the trustee].
Sec. 1576.004. PREMIUMS. A carrier with which the trustee
has contracted under Section 1576.003 [The administering firm]
shall bill each program participant directly for premiums and any
other program costs. Each participant is responsible for required
payments.
SECTION 26. Section 1576.005(a), Insurance Code, is
amended to read as follows:
(a) The group long-term care insurance program is not part
of the group coverages offered under Chapter 1575 or 1579.
SECTION 27. Section 1576.006, Insurance Code, is amended
to read as follows:
Sec. 1576.006. RULES. The trustee may adopt rules as
necessary to administer [implement] this chapter[, including rules
specifying the coverage to be offered under the group long-term
care insurance program].
SECTION 28. Subchapter A, Chapter 1576, Insurance Code, is
amended by adding Sections 1576.008, 1576.009, 1576.010, 1576.011,
and 1576.012 to read as follows:
Sec. 1576.008. COMPETITIVE BIDDING REQUIREMENTS; RULES.
(a) A contract to provide benefits under this chapter may be
awarded only through competitive bidding under rules adopted by the
trustee.
(b) The rules may provide criteria for determining whether a
carrier is qualified.
Sec. 1576.009. CONTRACT AWARD; CONSIDERATIONS. (a) In
awarding a contract under this chapter, the trustee is not required
to select the lowest bid and may consider any relevant criteria,
including a bidder's:
(1) ability to service contracts;
(2) experience; and
(3) financial stability.
(b) If the trustee awards a contract to a bidder whose bid
deviates from that advertised, the trustee shall record the
deviation and fully justify the reason for the deviation in the
minutes of the next meeting of the trustee.
Sec. 1576.010. GROUP LONG-TERM CARE INSURANCE PROGRAM FUND.
(a) The group long-term care insurance program fund is a trust fund
with the comptroller.
(b) The trustee shall administer the fund on behalf of the
participants in the plan of insurance coverage provided under this
chapter.
(c) The following shall be credited to the fund:
(1) money recovered under contracts for providing
insurance coverage under this chapter; and
(2) investment and depository income.
Sec. 1576.011. INVESTMENT OF FUND. The trustee may invest
the fund in the manner provided by Section 67(a)(3), Article XVI,
Texas Constitution.
Sec. 1576.012. PAYMENTS FROM FUND. Money in the fund may be
used only to cover the cost of administering the program and to
provide coverage under this chapter.
SECTION 29. Subchapter A, Chapter 1579, Insurance Code, is
amended by adding Sections 1579.005-1579.007 to read as follows:
Sec. 1579.005. CONFIDENTIALITY. (a) Section 825.507,
Government Code, applies to records relating to an employee or
dependent under the program and in the custody of the Teacher
Retirement System of Texas or in the custody of an administrator,
carrier, agent, attorney, consultant, or governmental body acting
in cooperation with or on behalf of the system.
(b) The Teacher Retirement System of Texas may disclose to a
health coverage or benefit provider information in the records of
an individual that the system determines is necessary to administer
the program.
Sec. 1579.006. EXEMPTION FROM PROCESS. (a) The following
are exempt from execution, attachment, garnishment, or any other
process:
(1) benefit payments, including optional benefit
payments, active employee and state contributions, and retiree,
surviving spouse, and surviving dependent child contributions;
(2) any rights, benefits, or payments accruing to any
person under this chapter; and
(3) any money in the fund.
(b) The items listed in Subsection (a) may not be assigned
except for direct payment to benefit providers as authorized by the
trustee by contract, rule, or otherwise.
Sec. 1579.007. EXEMPTION FROM STATE TAXES AND FEES. A
premium or contribution on a policy, insurance contract, or
agreement authorized by this chapter is not subject to any state
tax, regulatory fee, or surcharge, including a premium or
maintenance tax or fee.
SECTION 30. Section 1579.052, Insurance Code, is amended by
amending Subsection (c) and adding Subsection (e) to read as
follows:
(c) The trustee may contract with [an] independent and
experienced group insurance consultants and actuaries [consultant
or actuary] for advice and counsel in implementing and
administering the program.
(e) The trustee shall take the actions it considers
necessary to devise, implement, and administer the group program.
SECTION 31. Section 1579.102, Insurance Code, is amended to
read as follows:
Sec. 1579.102. CATASTROPHIC CARE COVERAGE PLAN. The
coverage provided under the catastrophic care coverage plan shall
be prescribed by the trustee by rule and must provide coverage at
least as extensive as the coverage provided under the TRS-Care 1 [2]
plan operated under Chapter 1575.
SECTION 32. Subchapter F, Chapter 1579, Insurance Code, is
amended by adding Sections 1579.254 and 1579.255 to read as
follows:
Sec. 1579.254. CONTRIBUTIONS HELD IN TRUST FOR FUND. A
participating entity:
(1) shall hold contributions required by this
subchapter in trust for the fund and its participants; and
(2) may not divert the contributions for any other
purpose.
Sec. 1579.255. INTEREST ASSESSED ON LATE PAYMENT OF
CONTRIBUTIONS BY PARTICIPATING ENTITIES. (a) A participating
entity that does not remit to the trustee all contributions
required by this subchapter before the seventh day after the last
day of the month shall pay to the fund:
(1) the contributions; and
(2) interest on the unpaid amounts at the annual rate
of six percent compounded monthly.
(b) On request, the trustee may grant a waiver of the
deadline imposed by this section based on a participating entity's
financial or technological resources.
SECTION 33. The following laws are repealed:
(1) Sections 22.004(d) and (e), Education Code; and
(2) Chapter 1577, Insurance Code.
SECTION 34. Effective September 1, 2005, any money in the
school district employees and retirees optional insurance trust
fund created under Chapter 1577, Insurance Code, as that chapter
existed before being repealed by this Act, is transferred to the
group long-term care insurance program fund established under
Chapter 1576, Insurance Code.
SECTION 35. This Act takes effect September 1, 2005.